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Arch Resources Inc (ARCH) Stock Fundamental Analysis

USA - New York Stock Exchange - NYSE:ARCH - US03940R1077 - Common Stock

134.83 USD
+0.94 (+0.7%)
Last: 1/13/2025, 8:04:00 PM
133.13 USD
-1.7 (-1.26%)
After Hours: 1/13/2025, 8:04:00 PM
Fundamental Rating

6

Taking everything into account, ARCH scores 6 out of 10 in our fundamental rating. ARCH was compared to 154 industry peers in the Metals & Mining industry. ARCH has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. ARCH is valued quite cheap, but it does not seem to be growing. With these ratings, ARCH could be worth investigating further for value investing!.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

  • In the past year ARCH was profitable.
  • ARCH had a positive operating cash flow in the past year.
  • ARCH had positive earnings in 4 of the past 5 years.
  • Each year in the past 5 years ARCH had a positive operating cash flow.
ARCH Yearly Net Income VS EBIT VS OCF VS FCFARCH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

1.2 Ratios

  • ARCH has a better Return On Assets (7.57%) than 80.95% of its industry peers.
  • ARCH has a better Return On Equity (12.43%) than 80.95% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 8.85%, ARCH belongs to the top of the industry, outperforming 80.27% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for ARCH is significantly above the industry average of 10.32%.
  • The last Return On Invested Capital (8.85%) for ARCH is well below the 3 year average (29.63%), which needs to be investigated, but indicates that ARCH had better years and this may not be a problem.
Industry RankSector Rank
ROA 7.57%
ROE 12.43%
ROIC 8.85%
ROA(3y)29.78%
ROA(5y)16.37%
ROE(3y)59.38%
ROE(5y)18.66%
ROIC(3y)29.63%
ROIC(5y)N/A
ARCH Yearly ROA, ROE, ROICARCH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 0 50 -50 100 -100 150

1.3 Margins

  • With a decent Profit Margin value of 6.69%, ARCH is doing good in the industry, outperforming 75.51% of the companies in the same industry.
  • ARCH's Profit Margin has improved in the last couple of years.
  • ARCH has a better Operating Margin (7.76%) than 62.59% of its industry peers.
  • In the last couple of years the Operating Margin of ARCH has grown nicely.
  • ARCH has a Gross Margin (17.11%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of ARCH has grown nicely.
Industry RankSector Rank
OM 7.76%
PM (TTM) 6.69%
GM 17.11%
OM growth 3YN/A
OM growth 5Y8.19%
PM growth 3YN/A
PM growth 5Y2.96%
GM growth 3Y61.46%
GM growth 5Y3.54%
ARCH Yearly Profit, Operating, Gross MarginsARCH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40 60

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7

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so ARCH is creating value.
  • The number of shares outstanding for ARCH has been increased compared to 1 year ago.
  • ARCH has a better debt/assets ratio than last year.
ARCH Yearly Shares OutstandingARCH Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 5M 10M 15M 20M
ARCH Yearly Total Debt VS Total AssetsARCH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B

2.2 Solvency

  • An Altman-Z score of 4.29 indicates that ARCH is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.29, ARCH is in the better half of the industry, outperforming 65.99% of the companies in the same industry.
  • There is no outstanding debt for ARCH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0.61
Altman-Z 4.29
ROIC/WACC0.79
WACC11.21%
ARCH Yearly LT Debt VS Equity VS FCFARCH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B

2.3 Liquidity

  • ARCH has a Current Ratio of 2.01. This indicates that ARCH is financially healthy and has no problem in meeting its short term obligations.
  • With a Current ratio value of 2.01, ARCH perfoms like the industry average, outperforming 46.26% of the companies in the same industry.
  • ARCH has a Quick Ratio of 1.41. This is a normal value and indicates that ARCH is financially healthy and should not expect problems in meeting its short term obligations.
  • The Quick ratio of ARCH (1.41) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 2.01
Quick Ratio 1.41
ARCH Yearly Current Assets VS Current LiabilitesARCH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M

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1

3. Growth

3.1 Past

  • The earnings per share for ARCH have decreased strongly by -64.17% in the last year.
  • ARCH shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 12.55% yearly.
  • The Revenue for ARCH has decreased by -17.03% in the past year. This is quite bad
  • The Revenue has been growing slightly by 5.11% on average over the past years.
EPS 1Y (TTM)-64.17%
EPS 3YN/A
EPS 5Y12.55%
EPS Q2Q%-89.51%
Revenue 1Y (TTM)-17.03%
Revenue growth 3Y28.94%
Revenue growth 5Y5.11%
Sales Q2Q%-17.02%

3.2 Future

  • Based on estimates for the next years, ARCH will show a decrease in Earnings Per Share. The EPS will decrease by -5.93% on average per year.
  • The Revenue is expected to decrease by -7.19% on average over the next years.
EPS Next Y-81.89%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
EPS Next 5YN/A
Revenue Next Year-19.02%
Revenue Next 2Y-9.78%
Revenue Next 3Y-7.19%
Revenue Next 5YN/A

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
ARCH Yearly Revenue VS EstimatesARCH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1B 2B 3B
ARCH Yearly EPS VS EstimatesARCH Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 20 40

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7

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 13.13, the valuation of ARCH can be described as correct.
  • 79.59% of the companies in the same industry are more expensive than ARCH, based on the Price/Earnings ratio.
  • Compared to an average S&P500 Price/Earnings ratio of 27.25, ARCH is valued rather cheaply.
  • A Price/Forward Earnings ratio of 6.77 indicates a rather cheap valuation of ARCH.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of ARCH indicates a rather cheap valuation: ARCH is cheaper than 89.12% of the companies listed in the same industry.
  • When comparing the Price/Forward Earnings ratio of ARCH to the average of the S&P500 Index (25.98), we can say ARCH is valued rather cheaply.
Industry RankSector Rank
PE 13.13
Fwd PE 6.77
ARCH Price Earnings VS Forward Price EarningsARCH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • ARCH's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. ARCH is cheaper than 77.55% of the companies in the same industry.
  • ARCH's Price/Free Cash Flow ratio is rather cheap when compared to the industry. ARCH is cheaper than 87.76% of the companies in the same industry.
Industry RankSector Rank
P/FCF 11.58
EV/EBITDA 6.26
ARCH Per share dataARCH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100

4.3 Compensation for Growth

  • ARCH has an outstanding profitability rating, which may justify a higher PE ratio.
  • A cheap valuation may be justified as ARCH's earnings are expected to decrease with -5.93% in the coming years.
PEG (NY)N/A
PEG (5Y)1.05
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%

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3

5. Dividend

5.1 Amount

  • ARCH has a yearly dividend return of 0.74%, which is pretty low.
  • Compared to an average industry Dividend Yield of 1.02, ARCH pays a bit more dividend than its industry peers.
  • Compared to an average S&P500 Dividend Yield of 1.82, ARCH's dividend is way lower than the S&P500 average.
Industry RankSector Rank
Dividend Yield 0.74%

5.2 History

  • The dividend of ARCH is nicely growing with an annual growth rate of 47.85%!
  • ARCH has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)47.85%
Div Incr Years0
Div Non Decr Years0
ARCH Yearly Dividends per shareARCH Yearly Dividends per shareYearly Dividends per share 2017 2018 2019 2020 2021 2022 2023 2024 5 10 15 20 25

5.3 Sustainability

  • 50.86% of the earnings are spent on dividend by ARCH. This is a bit on the high side, but may be sustainable.
  • The Dividend Rate of ARCH has been growing, while earnings will be declining. This means the dividend growth is most likely not sustainable.
DP50.86%
EPS Next 2Y-9.01%
EPS Next 3Y-5.93%
ARCH Yearly Income VS Free CF VS DividendARCH Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 0 500M 1B
ARCH Dividend Payout.ARCH Dividend Payout, showing the Payout Ratio.ARCH Dividend Payout.PayoutRetained Earnings

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Arch Resources Inc / ARCH FAQ

What is the fundamental rating for ARCH stock?

ChartMill assigns a fundamental rating of 6 / 10 to ARCH.


Can you provide the valuation status for Arch Resources Inc?

ChartMill assigns a valuation rating of 7 / 10 to Arch Resources Inc (ARCH). This can be considered as Undervalued.


How profitable is Arch Resources Inc (ARCH) stock?

Arch Resources Inc (ARCH) has a profitability rating of 8 / 10.


What are the PE and PB ratios of Arch Resources Inc (ARCH) stock?

The Price/Earnings (PE) ratio for Arch Resources Inc (ARCH) is 13.13 and the Price/Book (PB) ratio is 1.69.


How sustainable is the dividend of Arch Resources Inc (ARCH) stock?

The dividend rating of Arch Resources Inc (ARCH) is 3 / 10 and the dividend payout ratio is 50.86%.